Market News: US Takes Action on Venezuelan Gold
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The story of Venezuelan gold continues, though one gets the sense it is coming toward the end.  This week, the United States placed sanctions on Minerven, a gold processing company, and its president Adrian Perdomo. “Sanctions” in this case means any property owned or held by either the company or Perdomo are blocked, and no US citizen or entity can transact business with them.  Minerven is the target of the sanctions because in 2016 Venezuelan President Nicolas Maduro asked them to organize the gold supply to his government.

Also this week, Citibank indicated they would sell gold held on collateral for their loan to Venezeula, amounting to $1.4 billion USD.  This is expected to result in a profit of $258 million, which will be held for now but may be turned over to transitional leader Juan Guaidolater. Hopefully Citi performs this sale so that it doesn’t drop gold prices very much. All these things together give the sense that order is slowly coming into focus on Venezuela, maybe not fully today, but not too far in the future.  Today’s featured article is a piece giving details on the sanctioning of Minerven as that gives an education on the how’s and why’s of such things.

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